The International Monetary Fund raised its forecast for global economic growth for the first time in a year, with looser U.S. spending and China reopening to support demand in the face of a series of risks. According to the IMF, GDP is likely to expand by 2.9 percent in 2023, 0.2 percentage points higher than forecast in October 2022. This represents a slowdown from 3.4 percent growth in 2022, with the IMF expecting growth to reach its lowest level this year and accelerate to 3.1 percent in 2024.
The IMF report showed that rising interest rates by central banks and Russia's invasion of Ukraine will continue to weigh on economic activity this year amid a protracted inflation crisis. The IMF expects global consumer price increases to slow to 6.6 percent in 2023, 0.1 percentage points higher than the October forecast, after 8.8 percent in 2022, and a further slowdown to 4.3 percent in 2024.
Inflation rates in about 84 percent of countries are expected to decline this year compared to 2022.
Source (Al-Arabiya.net, Edited)
